Again some lessons to be learned from the recent emerging markets growth, but probably not what Rogoff is concluding.

First, resource base growth is extremelly unequal leveraged by the export base growth policy,which concentrates wealth on very few and a apathic internal demand.

Second, the demonstration that low wages and labour flexibility isn't a determinant for growth of productivity increases. It is is turned into higher profits for a class that is already much richer then the rest of the population.

Supply side economics with resource export based economics proved again to be disasterous, no matter if you are trying to pin this on QE, Brics are the living a proof classic think is wrong.

I totally agree with Zsolt Hermann. There are no emerging, developed or down the bottom markets. All we have today is one global economy, where all countries are totally interdependent on each other. To give you an idea: if for any reason African countries will stop supplying copper (for example) the market prices for all electrical / electronic products will be flying skyhigh within a few months.

Unfortunately the "big" economy experts still do not understand that our civilisation has reached a major milestone in it's development, where old (GREED IS GOOD) competitive behaviour concepts no longer work. The GFC was the first manifestation of it, but not last. The next crisis will be much stronger and longer, so that may be we wake up to the fact that our disbalanced system of wealth distribution betwen individuals, communities and countries is crying for a total change.

We need a new system of wealth distribution, based on cooperation between the countries, communities and individuals. If we as the whole humanity will not understand this in the next few years, the natural events will take care of these disbalances through economic, political, social upheavals.

But dear "big" economists, may be if you put your thinking caps on, just may be, we can avoid a lot of pain and suffering the natural process of our civilisation development has prepared for us. All we need is the desire to develop a new economic system, based on equality of people,communities and countries. Than we may be able to build a new world, based on connection of people - not hatred, cooperation of people instead of competition for more than WE really need.

nothing is simple in economy ..(compication ) but every time when the economy come down so (i mean is very down ) the atenttion have to go some were (SYRIA ) RIGHT NOW next ?

i like your column .always correct (but we needed academic) solution ..mathemantice ..numbers are important to write and to keep too
Emerging market's well CHINA is good ..India too .Europe not trust
America too
so the best if some one have to see emerging market is AFRICA ..they needed to much investim AND there is the futuro ..
thank you

It seems evident that world-scale, or global, monetary issues should not be managed, by advanced countries, emerging countries, or the IMF, solely with a view typical of technical investment criteria, that is, with a short term outlook. It seems evident, rather, that they should be managed with heavy fundamentals' investment criteria, quite literally. In other words, monetary policy seems to have too much "20th century monetary policy" about it, and not enough "21st century economic development policy," or long-term criteria, underpinning it. They must be concurrent to exist at all, and be sustainable. Perhaps the most important element to this concept is Social Inclusion, or sharing of the benefits of work, everybody's work, by everyone, all consumers -productive or not, able-bodied or not. It is a matter of degree, which must be fair, and as such must be flexible and vary over time and place, gradually eliminating poverty in real and relative terms. When this is attained, real inclusion will be too, and not before. This is not communism, or even 20th century socialism: It is common sense to those who are conscious of the world as it is today and will be tomorrow if it does not adapt creatively and effectively to its own needs. More common sense: Poverty is the natural enemy of peace, and extreme poverty is the irreconcilable enemy of peace. If everyone able-bodied is to be productive, in principle, and everyone is to be included in consumption, then the way the world as a whole views development, and the investments that make it possible, must be approached in Partnership, on a global scale. If this were accomplished, and it will, we would all be able to preserve and enjoy the natural and man-made wonders about us.

Sir, Your book "This time is different" had a chapter dedicated on the subject of where capital would flow. I did not quite agree to the inference that capital would not move where capital to labor ratios are high, but where the institutions, governance standards are conducive for investments to fructify to match the productivity gains. Today the data would point that capital did flow to the emerging markets where the ratios are indeed high, and today in the slightest hint of withdrawal the markets have dumped these destinations.

Whether Institutions and governance standards are a result or means to an end, is a matter of debate; for India in particular, these may have been the weakest link, but capital flight is the fundamental source of market gyrations. While matters would settle on new normals, the shift in many parameters would take much more time to heal. But whether or not developed nations live in an insulated world needs no conjecture.

There is no such thing as "emerging market".
There is only one market.
If we look at the picture illustrating the article, that house sinking in the water is the whole, global world.
We are all sitting on that sinking house/boat.
And regarding throwing the safety equipment, there is nobody "on the outside" who can throw a rope to us.
Unless we all change the whole collapsing system we are stubbornly trying to resuscitate, changing from artificial demand driven "constant quantitative growth" illusion to an available human and natural resource driven, realistic socio-economic system, we will all drown very soon.
And the most important thing we have to understand is that we all depend on each other, thus we have to make the changes in a mutually responsible and complementing way.

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